Fermentation is an effective method for improving the nutritional quality and functional characteristics of grains. This study investigated changes in the structural, physicochemical, and functional properties of fermented barley dietary fiber (FBDF) exerted by Lactiplantibacillus plantarum dy-1 (Lp. plantarum dy-1) as well as its in vitro fecal fermentation characteristics. Lp. plantarum dy-1 fermentation remarkably changed the structure of FBDF, including the microstructure and monosaccharide components, correlating with improved water or oil retaining and cholesterol adsorption capacities. Additionally, Lp. plantarum dy-1 fermentation significantly (p < 0.05) promoted the release of bound phenolics from 6.24 mg g-1 to 6.93 mg g-1 during in vitro digestion, contributing to the higher antioxidant capacity and inhibitory activity of α-amylase and pancreatic lipase compared with those of raw barley dietary fiber (RBDF). A total of 14 phenolic compounds were detected in the supernatants of digestion and fermentation samples. During colonic fermentation, FBDF significantly increased the production of acetate, propionate, and butyrate (p < 0.05), inhibited the growth of Escherichia-Shigella, and promoted the abundance of SCFA-producing microbiota such as Faecalibacterium and Prevotella_9. In conclusion, Lp. plantarum dy-1 fermentation enhanced the physicochemical properties and in vitro fermentation characteristics of barley dietary fiber, representing a promising bioprocessing technology for modifying barley bran.